Personal Defenses to Negotiable Instrument

The video tutorial discusses personal defenses against the enforcement of negotiable instruments, focusing on various contract law defenses. It covers breach of contract, failure of a condition, lack or failure of consideration, mistake, waiver or release, prior payment, theft, unauthorized completion, and fraud in the inducement. Each defense is explained in the context of how it can be used to challenge the obligation to pay a negotiable instrument.

What is a personal defense that arises when the underlying agreement of a negotiable instrument is not fulfilled?

• Breach of contract

• Fraud in the inducement

• Theft of the instrument

• Unauthorized completion

Which of the following is a defense if the consideration in the underlying contract is deemed invalid?

• Waiver of rights

• Prior payment

• Lack or failure of consideration

• Failure of a condition

What defense can be used if both parties make a mistake in the contract?

• Fraud in the inducement

• Mutual mistake

• Unauthorized completion

• Theft of the instrument

Which defense applies if an instrument has already been paid but is presented again for payment?

• Prior payment

• Breach of contract

• Fraud in the inducement

• Lack of consideration

What is a defense against enforcement if someone is tricked into entering a contract?

• Failure of a condition

• Mutual mistake

• Fraud in the inducement

• Unauthorized completion